Shared Services Update Fall, 2013

1. Shared Services Update Fall, 2013

2. Agenda

3. Quiz

4. 1,300

5. 1,300 advertising vendors used annually

6. 438

7. 438 industrial equipment vendors used annually

8. 9,800

9. 9,800 unused licenses for one software program

10. Shared services can support SUNY’s mission and goals

11. Best-in-class customer service in support functions

12. Increased focus on and resources for core mission activities

13. More cohesive/coordinated operations across the SUNY system

14. Many Challenges Facing Higher Education Facing Challenges. • Budget Pressures • 22% drop in direct State tax spending since 2007-08 • Climbing Tuition • Resident undergraduate tuition has increased since 2007 -2008 • 35% at State-operated Campuses • 21% at Community Colleges • More Scrutiny of University Spending • 57% of parents question to value of tuition paid • Increasing Competition Among Schools • In-State competition from 209 institutions • Shrinking applicant pool • Experts estimate that the applicant pool with shrink 11% by 2005 • Rapid Changes in Technology • Increased demand for online education delivery

15. Shared Services are high on agendas across Higher Education • I see shared services as something that is inevitable. It’s the next logical influx of thinking in the business world brought into higher education. • – U. Michigan AVP Finance • Providing service through hundreds of separate and unconnected databases[…] is not the model used by other large enterprises, nor is it the model our funding partners in the governor’s office and the General Assembly expect us to continue to utilize in the 21st century. • The help the department registrar has received from the shared services unit has been exemplary,and services important to the local culture of the department have been maintained.

16. Update

17. Shared Services Process Review Present Past Future Review of the Operational Efficiencies &Service Excellence: SS Implementation Plan Work with Campuses to Develop Refined SS Plan Design, Implement & Deliver Select Activities in Shared Environment • McKinsey & Company Engagement • High Level Data Analysis • Collected and analyzed staff and cost data • Key Stakeholder Interviews • Asked campus leaders for input on the prioritization of SS opportunities • Compared SUNY’s shared services plans to best practices • Obtained input from the SS Steering Committee and project managers • Engage campus leaders in a discussion about the recommendations for SS activities and priorities • Align select priorities • Decide on the process for developing projects to address selected priorities • Develop and agree on principles for working together • Create central SS organization to coordinate overall initiative • Further detail the approach for select activities • Design, pilot, and expand system-wide delivery & financial model for priority opportunities

18. Guiding Principles • Create processes for active campus input into design and implementation • Increase career opportunities for functional staff and access to specialized skills • Provide a net positive financial and service benefit for each campus Design Implementation • Focus on change management and frequent two-way communication • Ensure accountability for service excellence, efficiency, and campus benefits • Thoughtfully leverage existing investments and align with other initiatives • Whenever feasible, combine resources to drive specialization and efficiency

19. Priorities Preliminary – needs campus input and revision • Phase 3: Expand to new activities • Phase 2: Pilot and scale-up major functions • Phase 1: Quick wins, major functions & key enablers • Now-June 2014 • July 2014-June 2015 • July 2015-June 2016 • Timing1 Procurement • Strategic sourcing • Procurement processing IT infrastructure • Data centers • Networking • Help desk • Application management for shared platforms IT enablement • End user services Finance • FP&A reporting • General accounting HR • Self-service Academic and student support • Student billing and collection • Admissions processing • Financial aid • Registrar transactional activities • Continue implementation of common student information system • Criteria • Large savings opportunity • Necessary for rollouts in later phases • Dependent on enablers in phase 1 • Dependent on activities in phases 1 and 2 1 Indicates when implementation for an activity will start. Select activities will extend into the next phase

20. Process • 3. Expand • 1. Design • 2. Pilot • Objective • Work with campus staff to create SS delivery model • Test delivery model with volunteer campus(es) • Roll out delivery model when proven successful in pilot • Activities • Review data and set goals • Develop options for service delivery, including: • Funding model • Performance management • Campus / customer service • Choose options to pilot • Select pilot campuses • Continually monitor pilot performance • Revise delivery model as needed • Sign off on success or further revision • Create organization to oversee system transition • Build a phased approach to transition • Transition campuses to shared delivery model • Track new delivery model against targets • Realize benefits & reinvest savings

21. Campus Input

22. Common Themes Students Priorities Resources Value Collaboration Quality Service Support Funding Design Regional Campus Data Timing Skepticism

23. Common Themes • Continue to be mindful of campuses’ individuality, unique culture and specific needs • Timing is critical - be flexible with implementation schedules • Fears related to loss/redeployment of staff and the need for on-site services

24. Next steps

25. Next Steps • Continue Campus Engagement • Enhance the Role of the Steering Committee • Charter • Work Groups (Finance, Communication) • Align on Priorities, Process, and Principles for Shared Services with campuses under the guidance of SUBOA and CCBOA • Develop Specific Business, Implementation or Operating Plans for Selected Priority Activities with the leadership of SUBOA and CCBOA.

26. Questions?